Oil industry leader Petron Corp. posted a net income of P5.3 billion for the first half of the year, an 11.7 percent decline from P6.02 billion during the same period last year.
The company, in a statement Tuesday, attributed the decrease to low international oil prices and decreased sales volumes.
Petron said escalating geopolitical tensions in the Middle East, global tariff tensions, and the decision by OPEC plus members to unwind production cuts pushed Dubai crude prices to a low of $64 per barrel in May before recovering to $69 in June.
As a result, Dubai crude averaged $72 per barrel in the first half of the year, 14 percent lower than last year’s average of $83 per barrel.
Petron president and chief executive Ramon Ang underscored the key factors behind the company’s performance amid market challenges.
“Our results continue to reflect our resilience in overcoming market challenges, while highlighting the strength of the Petron brand across different customers and industries,” Ang said.
“We remain confident in our ability to drive growth as we further enhance our operations toward greater efficiency and sustainability.”
Petron’s strategic marketing initiatives helped its Philippine operations capture local demand growth, with retail volumes increasing by 13 percent.
This, combined with optimized plant operations and increased production, helped cushion the impact of weak regional refining cracks and the overall drop in prices during the period.
Petron continues to operate the Philippines’ only remaining refinery, the Petron Bataan Refinery in Limay with a capacity of 180,000 barrels per day, as well as the Port Dickson Refinery in Malaysia.
Revenues for the first six months reached P386.4 billion, down 13 percent from the same period last year, mainly due to lower international oil prices and decreased volumes from Petron’s trading operations in Singapore.
The combined sales volume from the Philippines and Malaysia rose by 3 percent to 56.2 million barrels, up from 54.7 million barrels the previous year, fueled particularly by Petron’s strong retail performance in the Philippines.
Including trading transactions from the company’s operations in Singapore, consolidated sales volume ended at 64.2 million barrels, a 7 percent decrease from 69.1 million barrels in 2024.
Petron has also raised P32 billion through its latest fixed-rate bonds offering, confirming strong investor confidence. The base offer of P25 billion was 1.3 times oversubscribed, leading to an oversubscription of P7 billion. Proceeds from this fundraising were allocated for the redemption of the company’s Series D and E bonds and for general corporate purposes.
